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The State of Dairy Cattle in India

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The State of Dairy Cattle in India The State of Dairy Cattle in India This report is part of a Humane Society International sponsored project by the Federation of Indian Animal Protection Organisations and hosted by the Blue Cross of India. 1 CONTENTS I. Introduction II. Population and Breeds II.1. Context II.2. National Figures and Trends II.3. State trends II.4. Breeds III. Production and Consumption Trends III.1. Production III.2. Consumption III.3. Future Scenario III.4. Impacts of Changing Demand IV. Structure of the Dairy Sector IV.1. History of the Dairy Sector IV.2. Structure of the Dairy Sector a. The Organised and Unorganised Sectors b. The Cooperatives V. Dairy and Key Social Indicators V.1. Income and Employment Generation in the dairy Sector V.2. Gender and Social Equity VI. Laws and Policies (Including International Trade) VI.1. Legal Frameworks a. Cow Slaughter and transport b. Rearing c. Government Notifications impacting Dairy Cattle VI.2. Policy Environment and its Application through Govt. Schemes VI.3. International Trade and Dairy Endnotes References 2 I. INTRODUCTION This report deals with the situation of cows in the dairy sector in India and various factors that influence the condition of such animals. The situation with respect to cattle (specifically cows) used in the dairy industry has to be viewed with a somewhat different lens (compared to other animals that are raised for human consumption, either directly or indirectly) owing to the dynamics associated with the cultural and religious significance of cows within Hindu mythology and tradition. In a large majority of Indian states, especially those that have large cow populations, cow slaughter is banned. However, the often repeated statement about cow slaughter being banned in India is technically incorrect, since a number of states have no legislation towards this end. In such states there are no cultural or religious taboos associated with cow meat, which is a routine part of people‟s diet. Buffalos though enjoy no such protection and are slaughtered once they are no longer of use in the milk production cycle. Buffalos are also a significant contributor to the overall supply of milk that the country produces. The absolute number of buffalos in the country is growing as is the rate of growth of their population. The Government, Social Development agencies, the dairy sector highlight the fact that India holds the world‟s second largest cattle population and is the world‟s largest milk-producing country. The dairy sector is characterized by a smallholder production system of village-based production units often consisting of one to three milking animals. The majority of milk produced is consumed on the farms where it is produced or distributed through informal channels. Formal markets receive milk deliveries from millions of smallholders coordinated through an extensive cooperative structure (Babcock Institute 2006:Introduction). Government policies and budgetary allocations promote a model where dairy is one of the constituents of the farmer‟s livelihood basket and most often complements crop production. Government schemes related to dairy have thus focussed on improving livelihoods rather than maximising milk production per se. Milk production though has certainly gone up, though that is more because of the sheer size of the Indian dairy herd (including buffalos) than productivity enhancement. This structure of the dairy sector has welfare implications that are discussed in the report. The early 1990s saw deregulation of the dairy sector making it possible for private players to set up dairy units fairly easily. Subsequently, the regulatory climate has been further relaxed creating the potential for the private organised sector to participate actively in the dairy arena. This development, viewed in combination with rapidly changing consumption patterns and increases in disposable incomes, particularly in urban areas, implies that there is a huge spurt in demand for dairy products that the existing dairy model may not be able to meet. Projections made by dairy industry watchers predict that the Indian dairy pie may be large enough to allow the cooperative as well as the corporate players to operate in tandem. The projected rise of dairies organised on industrial lines again has significant welfare implications that are discussed in the report. II. POPULATIONS AND BREEDS II.1. Context The entire cattle production of the country is for milk and draught purposes only. While the females are used for milk the bullocks are the mainstay of agricultural operations, especially among small land holders. Male calves are also often abandoned or sent for slaughter.The following table1 provides a context to the dairy sector of the country relative to India‟s production of various agricultural products. Cow meat does not feature in this table as its export (as well as import) is restricted as part of India‟s Export Import Policy. As the table below shows that India accounts for about two-thirds of the world‟s buffalo milk and nearly half of the world‟s buffalo meat output. Cow milk production is less than buffalo milk production, and India‟s share of world cow milk output is less than one-half its population share. Combining milk from all species, India produces about 15 % of the world supply. India produces 10.5 percent of the world‟s cereal (food) grains, mostly wheat and rice. India is also a major producer of cotton and sugarcane, and accounts for two-thirds of world jute output. 1 http://faostat.fao.org/ 3 (Source: FAO statistical databases http://faostat.fao.org/) II.2. National Figures and Trends According to the recent most livestock census undertaken in 2003, the country has about 185.18 million cattle and almost 98 million buffaloes. Interestingly, a decline in the total cattle population has been observed over the last three livestock censuses as depicted in the table below. This is mainly due to the reduction in population of indigenous cattle. Crossbred cattle on the other hand have increased by about 62% over the last 11 years. Over 1997-2003, the population of crossbred cattle increased by 22.82%, compared to a decrease in the population of indigenous cattle by 10.23% during the same period. Buffalo numbers too have continued to rise during this period. Census Cross bred Indigenous cattle Total Buffaloes Total cattle + buffaloes 1992 15.215 189.369 204.584 84.206 288.790 4 1997 20.099 178.782 198.882 89.918 288.800 2003 24.686 160.495 185.181 97.922 283.109 (Figures in millions) (Source: DAHDF 2006) The percentage change in the composition of the country‟s dairy animal population in presented in the table below. (Source: http://www.nddb.org/statistics/livestock_population_species5.html) This clearly shows the growing preference for buffalos as milch animals. Between buffalos and cows, the Indian buffalo herd is expanding by 1.2% per annum, while the dairy cow herd is decreasing by an average of 1% per year. This is principally due to the fact that as far as milch animals are concerned, buffalos are preferred to cows – Indian buffaloes produce more milk than cows and their milk has a higher fat content and a richer taste. At a national level, 57% of the milk production consists of buffalo milk and 43% of cow‟s milk. Each year buffalo milk production rises by 4% and just cow‟s milk by just 1.2%. (Brouwers 2006: pp 2). The population of buffaloes increased from 43.2 million in 1951 to 93 million in 2003, although growth in the buffalo population decelerated from around 2% per year during the 1970s and 1980s to around 1.2% thereafter. This is on account of faster deceleration in the growth of male buffalo population, which fell to 0.3% during the latter period from 0.7%. The proportion of females among the buffalo population has been increasing consistently and in 2003 accounted for about 55% (Stall et al. 2008) Apart from total animal numbers, the Animal Husbandry Department of the Government of India also records figures on the following disaggregate parameters: Number of female cows that were capable of producing milk – 58.085 million. The number of breedable cattle according to the 2003 census was 63.012 million. This figure does not include buffalos. The number of bulls was recorded as 4.801 million. As far as bulls are concerned, there has been a net decline in the number of animals – both indigenous as well as cross breeds. The population of working animals has been recorded as 54.319 million. This is a 0.43 % decline from the 1997 figure. Across all these categories, there has been a decline of varying proportion in the number of indigenous animals while the number of cross bred ones has gone up. Indian cattle population trends can be summarised as follows2: The cattle population increased until 1992, when it started declining. The turning point in the composition of the draft animal population was 1977 to 1982: at this time the male cattle population declined by over 12 million and the male buffalo population declined by some 2 million. Between 1992 and 2003 the cattle population declined by 9%, with the decline confined to indigenous stock that comprised 87% of the total cattle population in 2003. The number of indigenous cattle declined by 15%, while that of cross-breds increased by 62 %. Within the indigenous stock, the decline was particularly drastic for males (22%). These figures are reflective of the policy adopted by development agencies – governmental as well as non governmental – of crossing indigenous cattle with foreign breeds through artificial insemination. The decline 2 See Stall et al 2008: pp 39 5 in local breeds can be also be correlated with the reduced demand and need for working animals, especially in farms as a result of increased mechanisation.
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